Fitch rates Energy Transfer notes BB+

Fitch Ratings said it assigned a BB+ rating to Energy Transfer Equity, LP's $400 million senior secured notes due 2023.

The company's issuer default rating is BB.

The outlook is stable.

The proceeds will be used to fund a tender of up to $400 million of 7½ % senior notes due 2020.

Energy Transfer has launched syndication of a new $900 million senior secured term loan facility due 2019 and expects to use the proceeds to refinance its existing $900 million senior secured term loan due 2017, which has a BB+ rating.

The ratings reflect the considerable scale of the company's consolidated operations, the quality and diversity of assets held by its operating master limited partnerships and strengthened credit metrics, the agency said.

A series of merger transactions and asset sales resulted in a larger, more diversified and generally financially stronger family of Energy Transfer companies, Fitch said.

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